TaxTMI 
TaxTMI 
2018 (11) TMI 1745
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....der to cut down on frivolous litigation and taxpayer's grievance, the CBDT, which formulates policies for the I.T. Department, has issued recent instruction No. 3/2018 dated 11.07.18 revising the monetary threshold fixing the tax effect limit of Rs. 20 lacs for the revenue to file appeals before the ITAT and since in these appeals, the tax effect are below Rs. 20 lakhs, the appeal filed by the revenue is not maintainable and liable to be dismissed in limine. The relevant extract the said CBDT Circular (Supra) is as under:- "Reference is invited to Board's Circular No. 21 of 2015 dated 10.12.2015 wherein monetary limits and other conditions for filing departmental appeals (in Income-tax matters) before Income Tax Appellate Tribunal,....
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.... issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. 5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para....
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....al income assessed as per the provisions contained in section 115J B or section 115JC; D = the total income that would have been chargeable had the total income assessed as per the provisions contained in section 115JB or section 115 JB was reduced by the amount of disputed issues under the said provisions: However, where the amount of disputed issues is considered both under the provisions contained in section 115JB or section 115JC and under general provisions, such amount shall not be reduced from total income assessed while determining the amount under item D. 7. In a case where appeal before a Tribunal or a Court is not filed only on account of the tax effect being less than the monetary limit specified above....
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.... were acceptable to the Department. Accordingly, they should impress upon the Tribunal or the Court that such cases do not have any precedent value and also bring to the notice of the Tribunal/ Court the provisions of sub section (4) of section 268A of the Income-tax Act, 1961 which read as under *(*4) The Appellate Tribunal or Court, hearing such appeal or reference, shall have regard to the orders, instructions or directions issued under sub-section (1) and the circumstances under which such appeal or application for reference was filed or not filed in respect of any case." 9. As the evidence of not Cling appeal due to this Circular may have to be produced in courts, the judicial folders in the office of Pr. CsIT/ CsIT m....